Philips 2007 Annual Report Download - page 73

Philips Annual Report 2007 79
Continuing our active portfolio management, in line
with our growth strategy, we completed the sale of our
remaining Mobile Phone activities to China Electronics
Corporation (CEC) in March 2007. This transaction
included the transfer of the Xenium product brand and
the granting of an exclusive license to market and sell
mobile phones under the Philips brand for the coming
ve years. In December 2007, Philips announced that
it has reached an agreement to sell its Set-Top Boxes
and Connectivity Solutions activities, part of the Home
Networks business unit, to Pace Micro Technology of
the UK. Upon completion of the deal, Philips will become
a shareholder of some 23% in the combined business.
‘Relevant innovation’ continues to be a key driver
of our business. Major 2007 product launches included
the Aurea FlatTV, which we unveiled at IFA 2007 in Berlin.
Taking Ambilight a dramatic step further, Aurea creates
a halo of dynamic light within the frame and around
the TV for an immersive viewing experience. The Cineos
SoundBar with Ambisound technology simplies the home
entertainment experience, delivering real 5.1-channel
surround sound from a single unit, reducing the need
for multiple speakers and cabling. In PC gaming, we
introduced a range of accessories applying Philips’
amBX technology for even more immersive gaming.
Simplicity-led design is a key differentiator in the consumer
electronics marketplace. Its application – together with
relevant innovation and deep consumer insight – has
enabled CE to create unique and compelling lifestyle
propositions. Early in 2007, CE appointed a dedicated
Chief Design Ofcer to ensure a more structural and
consistent implementation of a differentiating design
strategy throughout the business creation process.
CE also continues to harness Philips’ ‘recommended brand’
status, driving Net Promoter Scores across all key
categories, processes, functions and consumer touch-
points, in particular delivering consistent ‘top-tier’ results
– above 60% levels – for the Ambilight Flat TV category.
In 2007, Philips added mobile phone company Nokia to its
partnerships in consumer electronics accessories. The Made
for Nokia XpressMusic range of audio headphones is designed
to deliver highest-quality multimedia entertainment for Nokia’s
growing portfolio of music-optimized devices and smartphones.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements